This post is NOT gambling-related, but these decisions by Amazon.com could have far-reaching effects for online marketers. What the regulators are failing to see, is that reduced revenue for affiliates, will mean less tax revenue for the state. Obviously, this was not thought out well. Rhode Island and North Carolina have also been shut-off by Amazon.com in recent months.

Amazon.com drops Colorado retailers after tax law enacted - The Denver Post

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How many affiliates do you think claim their full income and pay it to the state? I would be surprised if that amount of revenue, at amazon's standard 4% was even a drop in the bucket compared to what the states residents were spending at Amazon and not paying taxes on.

E commerce is not very good for state income taxes.

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Well, if you make more than $ 600 from Amazon.com, you will receive a 1099 from them, so you must pay taxes on that. But yes, you are right, the state govt stands to make a whole lot more from taxing them through Amazon.com. This decision by Amazon.com, whether it is a bluff or not, does not bode well for the affiliate industry at large (non-gambling).

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